The 3 Best Dividend Growth Stocks to Buy in February 2024

Core Insights - Dividend-growth stocks combine the benefits of high-yielding stocks and growth stocks, providing potential for cash flow and capital appreciation over time [1] Group 1: Wingstop (WING) - Wingstop has gained 73% over the past year and 320% over the past five years, with a market cap of $8 billion [2] - The company reported 26.4% year-over-year revenue growth in Q3 2023, including a 66.9% increase in digital sales [2] - Wingstop has a net profit margin of 16.7% and a 46% year-over-year increase in net income [2] - The company raised its dividend by 15.8% in 2023 and has a history of special dividends, with $4 per share distributed in 2022 [3] Group 2: Moody's (MCO) - Moody's is a risk management and financial services company with consistent dividend growth, raising its quarterly dividend from $0.70 to $0.77 in 2023 [5] - The company is leveraging artificial intelligence to enhance its software, aiming to attract new clients and increase revenue per customer [5] - Moody's repurchased $278 million in shares and paid out $424 million in dividends during the first nine months of 2023 [5] - The stock trades at a forward price-to-earnings ratio of 35, with a highest price target of $455 per share indicating a 15% upside [6] Group 3: Walmart (WMT) - Walmart has delivered a 77% gain over the past five years and repurchased $1.3 billion in shares in the first nine months of fiscal 2024 [7] - The company reported a total revenue growth of 5.2% year-over-year, with 15% e-commerce growth in Q3 FY2024 [7] - Walmart raised its fiscal year sales growth guidance from 5% to 5.5% and increased its annual earnings per share estimate from $6.40 to $6.48 [7] - The company has a 1.35% dividend yield and recently increased its quarterly payout from $0.56 to $0.57 per share, with expectations for another increase soon [8]